Palm muted by firmer ringgit despite gains in crude

KUALA LUMPUR: Malaysian palm oil futures traded flat on Wednesday as a firmer ringgit weighed on the market, though the currency pressure was offset by stronger crude oil prices.

The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange shed 1 ringgit, or 0.02%, to 4,035 ringgit ($998.02) a metric ton at the close. The contract rose 3.35% in the last two sessions.

The palm oil market was marginally lower amid a stronger ringgit, said a Kuala Lumpur-based trader.

The ringgit firmed to around 4.0550 at the midday break, its strongest level since March 5, 2021, the trader said.

The ringgit, palm’s currency of trade, strengthened 0.42% against the dollar, making the commodity more expensive for buyers holding other currencies.

Dalian’s most-active soyoil contract fell 0.05%, while its palm oil contract added 0.47%. Soyoil prices on the Chicago Board of Trade were up 0.37%.

Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market.

Oil prices rose slightly for a sixth day, supported by robust U.S. economic growth and the risk of supply disruptions from Venezuela and Russia, though prices were on course for their steepest annual decline since 2020.

Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.

European Union soybean imports for the 2025/26 season that began in July had reached 6 million metric tons by December 21, down 14% from the same period a year earlier, while palm oil imports fell 9% to 1.45 million tons, European Commission data showed.